Many may have this doubts whether to invest in share market or in fixed deposists .This is an article which compares the two type of investments....

Fixed deposits:

This type of deposit is a safer method of investment . In this type of investment your capital doesnt suffer any sort of damage. The interest rates given by the various banks vary from 8 to 10 percent. This type of investment is a better option for retired people, because they want to lead a risk free life but people of all age group tend to invest in this system only. the system operates in this way they take money from you and then with that they give loans to a third person at a higher rate of interest. But they take away ten percent of the interest as tax called as TDS. For example if they tell that the interst rate is 10% the actual interest which you will get is only 9%. Ok this is what FD is all about.

Investment in share market:

This is some what a riskier investment there is no security for your capital. The interest rate may be from 30% to even 60% but there you may also lose your capital, resulting in negative interest rates. Well mutaul funds which is somewhat a less riskier option can also be exercised. The advantage you can from the market investment is that if you invest in a share for more than a yaer then it is considered as long term investmant by our government and you dont need pay any tax for this investment. To know more about this type of investment you can see this article

investing in Indian share markets